The Commodity Futures Trading Commission on Monday said it is awarding more than $8 million to five whistleblowers whose information led to the successful resolution of an enforcement action against a fraudulent scheme.
The agency did not disclose the underlying case, the asset class involved, or how the $8 million was split among the five recipients. The Commodity Exchange Act bars the CFTC from releasing information that could reasonably reveal a whistleblower’s identity.
“These whistleblowers reported to the CFTC soon after recognizing the fraud,” said Raagnee Beri, Director of the Whistleblower Office. “Their contributions of information and assistance helped the CFTC bring and complete an enforcement action with a substantial recovery of funds for defrauded investors.”
David Miller, Director of the Division of Enforcement, said retail fraud remains “a high priority” for the agency.
Eligible whistleblowers receive between 10% and 30% of monetary sanctions collected. Awards are paid from the CFTC’s Customer Protection Fund, which is funded entirely by sanctions paid by violators, not from money owed to harmed customers.
The CFTC’s whistleblower program has paid out more than $430 million since its first award in 2014, tied to enforcement actions that have produced more than $3.7 billion in monetary sanctions.
